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Biotech / Medical : SAFESKIN -- Ignore unavailable to you. Want to Upgrade?

To: Steven Dopp who wrote (563)	1/25/1999 1:31:00 PM
From: Alan Bershtein	Read Replies (1) \| Respond to of 828

1/25 12:26 FOCUS-LIG <LIG.L> being wooed by mystery party By Andrew Young LONDON, Jan 25 (Reuters) - London International Group Plc was in favour again on Monday after the British condom and surgical glove maker confirmed market suspicions it had been approached by a suitor looking for a merger. Shares in LIG added about 28 percent to Friday's strong gains on the news it had received an unsolicited proposal regarding a possible merger. Its shares closed 36 pence higher at 164-1/2 pence in London, giving it a market capitalisation of around 550 million pounds ($912.6 million). Analysts said the potential merger partner was unlikely to be British given the size of LIG in comparison to bigger rivals in most of the UK healthcare sector, leaving a high likelihood that a U.S. firm is wooing LIG. "Carter Wallace <CAR.N> and Ansell Perry are names in the frame but antitrust problems make them unlikely as merger partners," said one sector analyst in London. "The only name that you get left with is SafeSkin <SFSK.O.> which would probably fit as there would be synergy benefits," she added. The attractions of LIG are many say analysts, with brand names like Durex and Avanti it is the only global player and has commanding positions in 40 countries around the world. Analysts say admirers may have viewed the recent decline in the company's stock as a good time to strike-up a dialogue. Aside from the recent takeover inspired gains, LIG shares have been generally depressed following a 23 percent drop in first-half earnings and a profit warning in December. LIG, although second in the U.S. condom market to Carter Wallace Inc's Trojan brand, was hit by declining sales in the U.S. in the first half as it continued to replace a hotch-potch of existing brands with Durex. Analysts reckon a price between 160 to 200 pence would likely be a realistic merger price, but warned against getting too excited about the stock as mergers do not dictate such a high premium as a fully-fledged takeover bid. ($1=.6027 Pound)